# In the matter of BGR Energy Systems Limited

> NCLT judgment dated 2023-10-20. Citation: TCN-2023-NCLT-01055. ABB India Limited, an operational creditor, filed a petition under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 20 Oct 2023
- **Citation:** TCN-2023-NCLT-01055
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bgr-energy-systems-limited-7b451667

## Summary

### Background

ABB India Limited, an operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against BGR Energy Systems Limited, the corporate debtor. The operational creditor claimed an amount of Rs. 53.26 Crores, including principal and interest, based on purchase orders executed between 2017 and 2019. The corporate debtor made partial payments but failed to pay the balance due.

## Facts

ABB India Limited (Operational Creditor) is a supplier of various materials and equipment. BGR Energy Systems Limited (Corporate Debtor) operates in two segments: supply of systems and equipment, and turnkey engineering projects. Between December 4, 2017, and February 28, 2019, purchase orders were executed between the parties. The Operational Creditor supplied materials as per the purchase orders. Two specific purchase orders stipulated that 100% of payments would be released against the invoice. The Corporate Debtor made partial payments but failed to pay the balance despite repeated requests. The Operational Creditor issued a demand notice under Section 8 of the IBC, 2016, claiming Rs. 53.26 Crores (Rs. 44.65 Crores principal and balance towards interests). The

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor under Section 9 of the IBC, 2016, should be …

**Ratio:** The initiation of CIRP under Section 9 of the IBC, 2016, requires the existence of a debt

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**Reasoning:** The court considered the facts presented by the operational creditor, including the

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**Interpretation:** Section 9 of the IBC, 2016, allows an operational creditor to initiate CIRP

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**Application:** In this case, while the operational creditor initially presented a valid claim

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## Parties

- **Judges:** BIDISHA BA…; SH. CHARAN…
- **Appellants:** ABB India L…
- **Respondents:** BGR Energy…
- **Advocates:** Kaushik P…; SVS Chow…

## Timeline

- **2017-12-04 — Execution of Purchase…**: Various purchase orders were executed between the Corporate Debtor and the Operational…
- **2019-02-28 — End of Purchase Order…**: The period during which purchase orders were executed between the Corporate Debtor and…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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